March 25th halting the march of some companies
As the GDPR marches forward there has been alot of talk about it's affects on the smaller companies that don't have the capabilities to rework their entire infrastructure of their products and systems.
Europe's new data protection law has seen many companies decide to call it quits due to their inability to conform.
The cost to comply with the new law has forced many companies into some tight corners, and some to even close down shop for good. An online game producer, a small social network and mobile marketing firm have been the victims thus far.
Thanks to the EU's General Data Protection Regulation, the new laws will affect everyone involved with EU customers and their data, which means even small time companies just getting started outside of the EU.
The tech giants like Google and Facebook have been affected by these new regulations, however they have been able to comply thanks to their resources and already large stature.
A chief marketing officer at Verve, has stated that the mobile marketer would shutter its operations in Europe because these new regulations don't align favorable with their particular business model, signifying the potential shift in availability of specific products in Europe from May 25th and onward.
While the new rules were developed to help consumers have more control over their data, there is also the side effect of closing smaller businesses down that were formed before these new regulations came into play.
Small companies get smaller and larger companies stay on top
With the GDPR companies will need consent from their consumers to process their personal information and will no longer be able to store this information indefinitely and they must comply with any customers who want their data deleted from the servers. This will help prevent the desire for hackers to breach servers for sensitive information, while also mitigating the risk if they still are breached. Companies must also now report such activity within 72 hours of knowing the event has occurred.
While companies still will be interacting with data when given consent, they must also now prove that the data is necessary to have and show they are properly handling the data. This verification will increase the need for monitoring and documentation, giving way to an increase in data protection officers.
Uber Entertainment which makes online games, is shutting down its game called Super Monday Night Combat on May 23rd due to their inability to comply with the new regulations.
The company has stated that it would cost too much to rewrite the game and migrate it onto a different platform. The current design was built in 2009, making it difficult to go back and delete data from user accounts, so they see it best to shut down than risk that large penalty.
Gravity Interactive, the maker of Ragnarok and Dragon Saga games chose to go a different approach to the problem and has decided that it will block Europeans from accessing it's games. While this will be easier said than done, it will be an interesting plan to watch unfold.
Czech internet company known as Seznam.cz said they will shutter its social networks for classmates because of the impending regulations. Their platform which has roughly 20,000 daily active users, would have to change completely in order to comply with the new rules.
Word of who the GDPR will affect is still en route for some companies and we should expect similar responses from other smaller companies soon.
Do you think the GDPR accounted for such problems for smaller companies? Will small companies be able to form after the GDPR has taken effect?
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